responsive to the identified risk D identify specific substa

responsive to the identified risk (D), identify specific substantive tests of details that would be 8.14 Using analytical procedures Moderate LO 3,4 Your assurance services manager has requested that you use substantive analytical procedures to Shady Oaks\' estimated revenue for patients staying in the centre, excluding medical procedures a LO 3, 4 calculate nd ancillary costs such as medication. Required Based on the background provided, describe all the key information required to estimate Shady Oaks\' revenue for patients staying in the centre.

Solution

Substantive procedures are intended to create evidence that an auditor assembles to support the assertion that there are no material misstatements in regard to the completeness, validity, and accuracy of the financial records of an entity. Thus, substantive procedures are performed by an auditor to detect whether there are any material misstatements in accounting transactions.

Substantive procedures include the following general categories of activity:

At a general level, substantive procedures related to testing transactions can include the following:

Examples of substantive procedures are: